LYNK Capital Fund Update: 2016 Fourth Quarter

We are pleased to provide you with this quarter’s update for the LYNK Capital fund. Overall, LYNK Capital, LLC remains on a successful path with continued growth in assets under management, debt utilization, and investor equity. In this newsletter, I’ll provide you with a brief update on LYNK’s current business, as well as our plans for growth.

Growth in Assets and Equity

As I write this report, LYNK has just completed the two busiest months for new loan production in its three-year history, with $4.1 million and $11.5 million dollars of new loans closed in January and February, respectively. This comes on the heels of a successful fourth quarter of 2016, in which assets under management grew by 20% in the quarter and 58% for the full year of 2016. To help accommodate this growth, LYNK added three employees in recent months – two loan originators and a director of marketing. Loan applications continue to come in at a rapid pace, and these additions to our team will help us responsibly handle our growing pipeline.

Additionally, in late January, LYNK successfully completed our goal of raising $25 million of equity capital. Potential investors continue to inquire about LYNK’s business model and taken together with recent origination volume, these events provide strong evidence that LYNK Capital’s business of providing private mortgage capital to real estate investors provides needed benefits for both borrowers and investors alike.

LYNK CAPITAL 2016 PRODUCTION

Transactions funded

53

Transactions paid off

27

Dollar amount funded

$25,111,044

Total repayments

$10,703,868

Growth in equity

$9,936,740

Interest collected

$2,891,570

LYNK ended the year with 72 assets totaling $36,873,802, which was an increase of 13 assets and $6,027,347 in the fourth quarter. The average rate on LYNK’s loan portfolio was 13.2%, with an average as-completed LTV of 53%. Borrowers repaid 10 loans in full during the quarter, with total repayments (including revolving loan repayments) totaling $3,406,329.

Loan Servicing

Delinquent loans remain consistent with prior quarters, with two loans 60 or more days past due, representing 1.6% of the total portfolio. Of these two loans, one is expected to be brought current by the borrower and to be resolved without further action. The second loan is now in the process of foreclosure and if the borrower is unable to satisfy the loan prior to the foreclosure date, it will become LYNK’s second foreclosure. Overall, LYNK’s delinquency rate has remained below our original projections and is not viewed as a major concern by the management team.

LYNK-Owned Assets

The completion and sale of the existing LYNK-owned assets remains a priority. Many of these projects are nearing completion, and the first two houses within the 8-unit development owned by LYNK in Charleston, SC were completed and sold recently, returning approximately $250,000 of capital to LYNK. Additionally, we expect to have at least five more units across LYNK’s portfolio completed and listed for sale within the month of March. The two largest projects remaining are ten- and thirteen-lot subdivisions in desirable locations in Montgomery County, Maryland. These projects are nearing the completion of the land development stage and we currently evaluating options for either building upon or selling these developments.

Market Updates

We believe that the economic climate will continue to improve, potentially supported by reductions in government regulations and revisions to the tax code, and that asset prices in most markets will continue to appreciate at a moderate rate. Having said that, there are some signs that certain markets nationally are becoming overvalued. Within LYNK’s footprint, we’ve identified Washington, DC as an area that is experiencing potentially excessive speculation and as a result, we’ve recently decided to reduce our loan-to-value limits by 5% in the district. Overall, though, the mid-Atlantic and southeastern markets served by LYNK show stable housing inventories, solid demand for new construction, and good levels of consumer confidence. Demand for renovation and construction loans continues to remain strong throughout the country, with the share of home sales resulting from renovations increasing from 5.3% in 2015 to 6.1% in 2016, according to a new study by Trulia. As always, our primary goal will be to focus on making sound loan decisions based on the core lending fundamentals regardless of market exuberance.

Looking Forward

Looking forward, we believe that LYNK Capital’s business model continues to remain relevant and provide value to both investors and borrowers. Opportunities for growth and profitability remain strong, and the fundamental need for private mortgage capital remains as prevalent today as it did three years ago. Accordingly, we are now planning for the future growth of LYNK, which will include a plan to grow and extend the existing LYNK Capital fund. Information about this plan will be distributed to our investors in the coming days and we will greatly appreciate your consideration of this plan.

As always, we remain committed to our core principles – to protect investment capital while producing above-market risk adjusted returns. So, on behalf of the entire management team at LYNK Capital, we thank you for your support and more importantly, for your trust with your money.

LYNK Capital, LLC is open to Accredited Investors only. In purchasing securities through a 506(c) Offering, the Company (“LYNK Capital, LLC”) is obligated to verify any participating investor’s status as an accredited investor in accordance with Rule 501 of Regulation D Investor Verification Standards and Protocols. Investors should consider the investment objectives, risks, charges and expenses of the Fund carefully before investing. This and other information are contained in the Fund’s Private Placement Memorandum dated August 1, 2014, which may be obtained by contacting LYNK Capital, LLC. Please read the Private Placement Memorandum carefully before you invest. A word about risk: Past performance is not a guarantee or a reliable indicator of future results. All investments contain risk and may lose value. This material has been distributed for informational purposes only and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements regarding future events and/or the future performance of the Fund are subject to certain risks and uncertainties that could cause actual events or the actual future results of LYNK Capital, LLC to differ materially from such forward-looking statements. Any historical performance data contained herein represents past performance and does not guarantee future results; current and future performance may be different than the performance data presented. LYNK Capital, LLC is not required to follow any standard methodology when presenting performance data and its performance may not be directly comparable to the performance of other similar funds.